Raylene Wilcroft, the widow of notorious bank robber David Wilcroft, is brought into the police station by Lassiter and Juliet to warn her that her husband's partners are being paroled. Since the money was never found, the police figure the convicts will come after Raylene for the cash, but she insists that her husband was the only one who knew where it was hidden, and he died in a car accident before he could divulge its location. Luckily for Raylene, Shawn and Gus happen to be at the station, and, overhearing that she is a psychic enthusiast, introduce themselves to her.
Raylene then becomes their first real client to hire them for a case. She asks them to contact her husband's spirit to find out where he hid the money, believing it will save her life from her husband's partners.
Meanwhile, Lassiter and Juliet are tailing the bank robbers in the hopes they will lead them to the missing money. Having arrested them the first time around, the cash is the last thing Lassiter needs to close the case for good.
Back at the Psych office, Shawn conducts a séance with Raylene, David's sister, and some other friends, using the guise of contacting the spirit world to gather information on David's final days. Shawn discovers that the last time anyone heard from him, he was in a town near where his cousin Roger lives. Shawn and Gus decide it's time for a road trip.
It turns out that Roger runs the cemetery where David is buried. But when Shawn and Gus arrive to talk to him, they discover something much more unexpected. David Wilcroft, alive and well! David tells them that he's not a hardened criminal. He got in over his head. His partners trusted him to stash the cash, which he buried that night during a heavy storm. Only problem, when he went back to look for it, he had lost where he buried it. All of his markers had been washed away. At that point, he figured he'd be better off dead. He staged his car accident and ever since has been looking for the missing money.
Because Raylene is still in danger, Gus decides to tell her that David is still alive. But not to worry, they have a plan to put the robbers back in jail, where they can't hurt her. Shawn goes to see Lassiter and Juliet, who are still tailing the robbers. He tells them they don't know where the money is, that David buried it and lost it, and they should just nail the convicts for the parole violations they no doubt have witnessed. Not surprisingly, Lassiter opts against taking his advice.
Now, it's up to Shawn and Gus. They go to the robbers' hotel to find some evidence to put them safely back behind bars but get caught by the men as they try to break in. Shawn is able to impress them with his psychic abilities and tells them that David wants them to know he lost the money and there is no reason to harm Raylene, since she doesn't know where it is. They think that's hilarious, as it was Raylene who was the cold-hearted mastermind of the robbery, and a very dangerous woman. They think David probably crashed his car on purpose to get away from her.
Shawn and Gus realize they've led Raylene right to David, and rush to go warm him. But when they get to the mausoleum, they find her already there, with a gun on David, demanding the money. Shawn is able to stall long enough for the robbers to get there, followed close behind by Lassiter and Juliet.
With the Wilcrofts on their way to jail, the only thing the police need to finally close the case is the money, which, of course, Shawn's already got a fix on and is halfway to miraculously locating for the authorities.